Land O'Lakes, Inc. reports results for third quarter 2018

Farmer-owned cooperative posts net earnings of $26.1 million on $3.2 billion in sales

https://www.landolakesinc.com/Press/News/2018-Q3-Earnings-Release

ARDEN HILLS, Minn. (Nov. 7, 2018) – Land O’Lakes, Inc. today reported quarterly net sales of $3.2 billion and net earnings of $26.1 million in the third quarter ending September 30, 2018, compared with 2017 third quarter net sales of $2.8 billion and net earnings of $47.5 million. Year-to-date net sales totaled $11.3 billion with net earnings of $209.0 million compared to net sales of $10.2 billion and net earnings of $270.4 million for the same period in the prior year.

"Land O’Lakes, Inc. is on solid financial footing and we’re focused on promising areas of growth and innovation across each of our businesses,” said Land O’Lakes, Inc. President and CEO Beth Ford. “Like farm families across the nation, we continue to face a challenging time in the agricultural economy. However, we see ongoing change and disruption across our industry and business as-a-whole as an opportunity. Our team is doing outstanding work every day to position our cooperative and member-owners for success.”

Earnings in Crop Inputs were lower due to a shift in product mix resulting from lower commodity markets and a decline in farm income, which impacted growers’ buying decisions. Crop Inputs was also impacted by increased competitiveness and a late spring planting season which resulted in fewer applications. In Dairy Foods, improved product mix in the branded butter portfolio and Foodservice business helped offset the impact of lower commodity markets in the ingredients business. Lower earnings in Animal Nutrition were a result of lower Livestock volumes, partially offset by higher vitamin margins in our distribution business. The company’s Crop Nutrient business, which was added as part of the United Suppliers merger in October 2017, contributed an incremental $14 million to year-to-date earnings.

About Land O'Lakes, Inc.
Land O'Lakes, Inc., one of America's premier agribusiness and food companies, is a member-owned cooperative with industry-leading operations that span the spectrum from agricultural production to consumer foods. With 2017 annual sales of $14 billion, Land O'Lakes is one of the nation's largest cooperatives, ranking 216 on the Fortune 500. Building on a legacy of more than 97 years of operation, Land O'Lakes today operates some of the most respected brands in agribusiness and food production including LAND O LAKES® Dairy Foods, Purina Animal Nutrition, WinField United and Land O’Lakes SUSTAIN. The company does business in all 50 states and more than 60 countries. Land O'Lakes, Inc. corporate headquarters are located in Arden Hills, Minn.